[Rules by the Tobacco Board of Zambia, with the approval of the Minister]

Act 13 of 1994,

SI 142 of 1968,

SI 353 of 1969,

SI 70 of 1992.

PART IPRELIMINARY

1. Title

These Rules may be cited as the Tobacco (Marketing and Licensing) Rules.

2. Interpretation

In these Rules, unless the context otherwise requires—

"arbitrator" means a classifier, sales supervisor or a buyer nominated by a sales supervisor and acceptable to the aggrieved buyer;

"auction floor" means premises licensed by the Board for the sale of tobacco by auction, and includes such part of the premises as may be allotted for storage of tobacco;

"auctionable tobacco" means tobacco of a class prescribed as such by the Minister pursuant to section 59 of the Act;

"bale" means a bale of tobacco;

"bale ticket" means the coupon attached to a bale by the holder of an auction floor licence for the purpose of recording thereon the details of sale;

"buyer" shall have the meaning ascribed to it in section 2 of the Act;

"catalogue" means the number of bales to be determined from time to time by the Board, contained in a written record compiled by a holder of an auction floor licence, by floor lot numbers for the purpose of conducting a sale of tobacco by mechanical auction as provided by rule 67;

"classifier" means an official of the Board authorised by the Board to classify tobacco;

"completion" means, in relation to the sale of a bale by auction, the removal of a copy of the bale ticket from the bale for recording purposes by a person authorised for this purpose by the holder of an auction floor licence, and cognate expressions shall be construed accordingly;

"crossing" means cancelling the sale of a bale sold by auction by drawing a cross on the bale ticket pursuant to rule 49, and cognate expressions shall be construed accordingly;

"delivery quota" means the quantity of auctionable tobacco determined by the Board pursuant to paragraph 20 of the Schedule to the Act which may be delivered by or on behalf of a registered grower for sale on any licensed auction floor in each delivery quota period;

"delivery quota period" means any period fixed by the Board pursuant to paragraph 20 of the Schedule to the Act during which delivery quotas may be delivered by or on behalf of registered growers to licensed auction floors;

"employee" means an employee of a licensed buyer;

"floor lot number" means the number allocated to a bale by a holder of an auction floor licence for the purpose of identification during a sale by mechanical auction;

"form" means the appropriate form prescribed in the Schedule;

"funked tobacco" means tobacco which, while appearing to be sound, has in the opinion of an arbitrator an aroma indicating that the tobacco has been or is about to become mouldy;

"grower" means a person registered as a grower or any person deemed to be a grower pursuant to section 26 of the Act;

"house account" means the house account of the holder of an auction floor licence;

"licensed auction floor" means any auction floor licensed by the Board pursuant to Part VIII of the Act;

"licensed buyer" means any person licensed by the Board to buy tobacco pursuant to Part VII of the Act;

"licensed grader" means any person licensed by the Board to grade tobacco pursuant to Part VI of the Act;

"loose leaf" means sound leaf tobacco which is packed without being tied into hands;

"lot number" means the identification number of a seller's bale;

"mechanical auction" means the sale by auction of tobacco by the employment of machinery whereby the buyer records his bid by mechanical means;

"nesting" means the packing of tobacco into bales in such a manner as to deceive a buyer about the nature or quality of the contents as a whole, and cognate expressions shall be construed accordingly;

"non-auctionable tobacco" means any class of tobacco prescribed as such by the Minister pursuant to section 59 of the Act;

"no-sale bale" means a bale for which no bid has been made at a sale by auction;

"primary or rural level" means the sale of tobacco by an individual producer or group of producers to a licensed buyer where it is intended that the said tobacco shall later be offered for sale to the trade by the buyer, whether as auctionable or non-auctionable tobacco, as the case may be;

"registered number" means a number allotted by the Registrar of a sales supervisor, as the case may be, pursuant to the provisions of section 28 of the Act, and shall include a number allotted for the purpose of resale of auctionable tobacco;

"sales floor" means that portion of an auction floor allotted for the sale of tobacco by auction and excludes any area or areas allotted for storage of tobacco;

"sales supervisor" means a person appointed by the Board, under the provisions of section 71 of the Act, to supervise the sale of tobacco by auction on a licensed auction floor;

"seller" means a person or his agent who sells or offers for sale tobacco;

"selling season" means the period in any year fixed by the Board when tobacco may be sold;

"split bale" means a bale containing two but not more than two grades of tobacco;

"starter" means a person authorised by the holder of an auction floor licence to place an approximate value on tobacco offered for sale by auction;

"ticket marker" means a person authorised by the holder of an auction floor licence to record on a bale ticket the details of sale of a bale of tobacco sold by auction;

"tobacco" means unmanufactured tobacco of a class prescribed by the Minister pursuant to section 59 of the Act.

PART IIRETURNS BY REGISTERED GROWERS

3. Crop forecast returns

(1) Every grower, other than a person deemed to be a grower solely by virtue of the provisions of sub-section (6) or (7) of section 26 of the Act, shall—

(a) before the 31st March in any selling season furnish to the Board a preliminary return in writing in Form 1 stating—

(i) the total number of acres of tobacco planted by him;

(ii) the quantity of tobacco which he estimates will be sold by him or on his behalf in that selling season;

(b) on or after the 15th May and before the 1st June in each selling season, furnish to the Board a further return in writing in Form 2 stating—

(i) the total number of acres of tobacco planted by him;

(ii) the quantity of tobacco which he expects will be sold by him or on his behalf in that selling season.

(2) If at any time before the end of a selling season a grower finds that the quantity of tobacco which he then estimates will be sold by him or on his behalf in that selling season will exceed or fall short of the estimated quantity contained in a return made by him in terms of sub-rule (1), he shall immediately inform the Board in writing of his revised estimate.

(3) The requirements of paragraph (a) of sub-rule (1) as regards the estimate of the quantity of tobacco which will be sold by or on behalf of any grower during any selling season shall be deemed to be substantially complied with, unless the last estimate thereof furnished by the said grower—

(a) exceeds the quantity of such tobacco sold by him or on his behalf in that selling season by more than fifteen per centum of such estimate; or

(b) falls short of the quantity of such tobacco sold by him or on his behalf in that selling season by more than twenty-five per centum of such estimate.

(4) The requirements of paragraph (b) of sub-rule (1) as regards the estimate of the quantity of tobacco which will be sold by or on behalf of any grower during any selling season shall be deemed to be substantially complied with, unless the last estimate thereof furnished by the said grower—

(a) exceeds the quantity of such tobacco sold by him or on his behalf in that selling season by more than ten per centum of such estimate; or

(b) falls short of the quantity of such tobacco sold by him or on his behalf in that selling season by more than twenty per centum of such estimate.

(5) The requirements of sub-rule (2) as regards the estimate of the quantity of tobacco which will be sold by or on behalf of any grower during any selling season shall be deemed to be substantially complied with, unless the last estimate thereof furnished by the said grower—

(a) if furnished before the 15th May—

(i) exceeds the quantity of such tobacco sold by him or on his behalf in that selling season by more than fifteen per centum of such estimate; or

(ii) falls short of the quantity of such tobacco sold by him or on his behalf in that selling season by more than twenty-five per centum of such estimate;

(b) if furnished on or after the 15th May—

(i) exceeds the quantity of such tobacco sold by him or on his behalf in that selling season by more than ten per centum of such estimate; or

(ii) falls short of the quantity of such tobacco sold by him or on his behalf in that selling season by more than twenty per centum of such estimate.

PART IIILICENSING OF GRADERS

4. Form and manner of application

(1) Application for the issue of a grader's licence shall be made to the Board in Form 3 and shall—

(a) state the name and address of the applicant and, in the case of a company registered in terms of any law, the name of each director, or, in the case of a partnership, the name of every partner;

(b) state the name of the person who will supervise the grading;

(c) in the case of an applicant who has not previously been licensed as a grader, be accompanied by—

(i) a plan showing the site; (ii) a plan and elevations;

(iii) a plan and description of the humidification system of the buildings in which it is proposed to carry on the grading or to store tobacco;

(d) in the case of an applicant who has previously been licensed as a grader, be accompanied by—

(i) where the structure of the building or buildings in which it is proposed to carry on the grading or to store tobacco has not been altered since the last licence was issued to such applicant authorising him to grade or store tobacco in such building or buildings, a statement that the structure thereof has not been altered; or

(ii) where the structure of the building or buildings in which it is proposed to carry on the grading or to store tobacco has been altered since the last licence was issued to such applicant authorising him to grade or store tobacco in such building or buildings, a plan showing the nature of such alterations;

(e) be accompanied by a fee of two hundred fee units payable to the Board, which fee however shall be returned to the applicant in the event of his application being unsuccessful.

(2) Every person who makes application for a grader's licence shall, if the Board so requires, submit evidence—

(a) as to his financial standing;

(b) as to the efficient management, supervision and organisation of the proposed business of grading.

[Am by SI 70 of 1992; Act 13 of 1994.]

5. Minimum standards of premises

No person shall carry on the business of a grader in premises unless—

(a) they are of such design and construction as may be approved by an architect appointed for this purpose by the Board;

(b) they are provided with storage space sufficient to permit the stacking of tobacco received for grading or awaiting despatch for sale without exceeding a height of eight feet above the level on which the bottom bale rests;

(c) the floor surface of the grading shed, storage sheds and all ramps, platforms and verandahs adjacent thereto, and where applicable the walls thereof, are composed of such material as to be resistant to rising damp and of sufficient strength and elasticity to withstand the loads imposed upon them, and capable of being so maintained and treated as to prevent the harbouring of pests of tobacco.

6. Receipting of tobacco

(1) Immediately following receipt of tobacco consigned to him by a grower, a grader shall send to such grower a receipt in Form 4.

(2) If for any reason a grader is unable to weigh bales of tobacco received by him immediately after delivery to his premises, he shall complete that part of the receipt in Form 4 as indicates the number of bales received and within three working days thereof issue a further receipt giving the weights.

7. Reports on condition

(1) Within seven days of receiving tobacco consigned to him by a grower, a grader shall examine not less than ten per centum of the bales in that consignment and send to the grower a report on the condition thereof.

(2) In the event that a grader fails to send to a grower the report referred to in sub-rule (1), the Board will assume that the tobacco in question was received by him in good condition.

8. Grading returns

Within ten days of completion of grading tobacco consigned to him by a grower for grading at any one time, a grader shall furnish the grower with a return in accordance with Form 5.

9. Copies of returns to Board

Copies of all receipts, reports and returns issued by a grader in terms of this Part shall at the same time be furnished to the Board.

[Am by SI 353 of 1969.]

10. Duties of licensed graders

In addition to any other duty imposed on him by or under these Rules or any other law, a grader shall—

(a) effect at his own expense adequate insurance to cover any loss which might otherwise be sustained by a grower while such grower's tobacco is stored in the grader's premises or is being carried in transport by direction of such grader;

(b) use all reasonable care in handling, storing grading and packing tobacco so as to prevent damage or loss due to breakage, contamination or other causes.

PART IVLICENSING OF BUYERS

11. Form and manner of application for licence

(1) An application for the issue of a licence to buy tobacco shall be made to the Board in Form 6 and shall state—

(a) the name and address of the applicant and, in the case of a company registered in terms of any law, the name of each director, and, in the case of a partnership, the name of every partner;

(b) the names of all persons authorised to buy tobacco on behalf of the applicant;

(c) the class or classes of tobacco which the applicant intends to buy;

(d) the manner in which the applicant proposes to buy tobacco;

(e) whether or not the applicant is a buyer solely by virtue of the ownership of land in respect of which he has agreed to permit a third person to produce tobacco on not more than ten acres of the said land in consideration of a share in the said tobacco when produced, or of a share of the proceeds of its sale, and if so the situation of such land;

(f) whether or not the application is for the issue of an exclusive licence pursuant to sub-section (4) of section 44 of the Act, and if so the area in which the applicant wishes to buy tobacco.

(2) Where an applicant has not previously been licensed as a buyer and indicates, pursuant to paragraph (c) of sub-rule (1), that he intends to buy tobacco by auction, he shall attach to his application statements in writing from the holders of all auction floor licences indicating their willingness to do business with the applicant if he is licensed as a buyer.

(3) An application for a buyer's licence made pursuant to this rule shall be accompanied by a fee of five hundred United States Dollars payable to the Board, which fee shall however be returned by the Board to the applicant in the event of the application being unsuccessful.

[Am by SI 70 of 1992.]

12. Grounds for refusal

The Board may refuse an application for the grant of a buyer's licence on any or all of the following grounds:

(a) that it is not satisfied with the financial standing of the applicant;

(b) that in its opinion—

(i) the grant of the licence would not be in the best interests of the industry or would detract from the orderly marketing or export of tobacco;

(ii) the applicant is not a fit and proper person to hold such licence;

(c) that the Board has in respect of any particular class of tobacco granted an exclusive licence, or intends, with the approval of the Minister, to issue such exclusive licence to another applicant pursuant to sub-section (4) of section 44 of the Act.

13. Returns by buyers

Every buyer to whom a licence has been issued under this Part shall before the fifteenth day of every month submit to the Board a return in Form 7 of all tobacco purchased by him in the previous month.

PART VLICENSING OF AUCTION FLOORS

14. Form and manner of application for licence

An application for the issue of an auction floor licence shall be made in Form 8 and shall—

(a) state the name and address of the applicant and, in the case of a company registered in terms of any law, the name of each director, and, in the case of a partnership, the name of every partner;

(b) be accompanied by—

(i) in the case of an application relating to premises not previously licensed as an auction floor where the applicant has not obtained a conditional authority for the premises pursuant to rule 15, a plan showing the site of the premises in relation to road and rail facilities, and a plan and elevations of the premises;

(ii) in the case of an application relating to premises previously licensed as an auction floor, a statement giving details of any alteration in the use of the premises as an auction floor since the issue of the last licence for such auction floor;

(iii) a fee of eight hundred fee units payable to the Board, which fee however shall be returned by the Board to the applicant if the application is unsuccessful.

[Am by SI 70 of 1992; Act 13 of 1994.]

15. Application for conditional authority

(1) An application for a conditional authority to erect, alter or extend premises including a licensed auction floor for use as an auction floor, shall be made to the Board in Form 9 and shall—

(a) state the name and address of the applicant and, in the case of a company registered in terms of any law, the name of each director, and, in the case of a partnership, the name of every partner;

(b) be accompanied—

(i) in the case of an application relating to existing premises not previously licensed as an auction floor, or to premises which it is proposed to erect, a plan showing the site of the premises or proposed premises in relation to road and rail facilities and a plan and elevations of such premises or proposed premises;

(ii) in the case of an application to alter or extend premises licensed or previously licensed as an auction floor, a plan and elevations showing details of the extension or alterations to the structure thereof.

(2) Upon completion of the building works in respect of which a conditional authority has been granted, the applicant shall, notwithstanding the issue of such conditional authority, comply with the provisions of rule 14, provided however that where the conditional authority is for the alteration or extension of licensed premises, no further fee shall be payable during the period of validity of the licence in question.

16. Minimum standards of premises

Except where the Board may, with the approval of the Minister, have exempted any premises from the provisions of Part VIII of the Act, no auction floor licence shall be issued in respect of premises—

(a) which do not comply with the following minimum requirements—

(i) the area available for storage of tobacco shall be not less than two-thirds of the area of the sales floor;

(ii) the total area of platforms and verandahs capable of being used for the loading or off-loading of tobacco shall not be less than forty per centum of the area of the sales floor;

(iii) the natural roof lighting of the sales floor shall be a combination of south lighting and translucent roof sheets of a material approved by the Board, so that the total area of such lighting shall not be less than fifteen per centum of the area of the sales floor;

(iv) the floor surface of the sales floor, storage areas, re-handling area, and all ramps, platforms and verandahs adjacent thereto, and where applicable the walls thereof, shall be composed of such material as to be resistant to rising damp and of sufficient strength and elasticity to withstand the loads to be imposed upon them, and capable of being so maintained and treated as to prevent the harbouring of pests of tobacco;

(v) there shall be in a position adjacent to or as part of the auction floor an area set aside for the re- handling of tobacco, which area shall be not less than seven per centum of the area of the sales floor, and shall be equipped with such devices as are capable of controlling the humidity therein to the satisfaction of the Board;

(b) unless the design and construction thereof are such as may be approved by an architect appointed for this purpose by the Board.

17. Returns to be submitted

(1) Every holder of an auction floor licence shall submit to the Board in writing—

(a) not later than noon on the next working day following any sale of tobacco on his floor, a return in Form 10 in respect of each class of tobacco sold on the previous day;

(b) not later than Monday of each week, a return in Form 11 in respect of each class of tobacco sold on his auction floor during the week ended midnight on the previous Wednesday;

(c) not more than thirty days after the date of the last sale of tobacco on his auction floor in any selling season, a return in Form 12 in respect of each class of tobacco sold thereon in such season.

(2) Whenever a holder of an auction floor licence becomes aware that information submitted by him in any return to the Board in terms of sub-rule (1) contains a material error, he shall forthwith notify the Board accordingly in writing, and as soon as possible thereafter submit an amended return.

18. Duties of holders of auction floor licences

In addition to any other duty imposed on him by or under these Rules or any other law, the holder of an auction floor licence shall—

(a) use all reasonable care in handling, storing and despatching tobacco so as to prevent damage or loss due to breakage, contamination or other causes;

(b) effect at his own expense insurance to cover loss of or damage to any seller's tobacco from time of receipt to completion of sale.

PART VIMARKING OF BALES FOR SALE

19. Part VI not to apply to sales at primary or rural level

The provisions of this Part shall not apply to tobacco offered for sale at a primary or rural level.

20. Registered numbers

(1) Subject to the provisions of this rule—

(a) every seller of Virginia flue-cured tobacco shall mark his bales clearly on the outside of the wrapping material with his registered number in arabic numerals not less than eight centimetres in height and on not less than two sides and one end of each bale, and shall in addition mark above his registered number the letters "VZ" in the same dimensions;

(b) every seller of Burley tobacco shall mark his bales clearly on the outside of the wrapping material with his registered number in arabic numerals not less than eight centimetres in height and on not less than two sides and one end of each bale, and shall in addition mark above his registered number the letters "BUZ" in the same dimensions;

(c) every seller of Oriental tobacco shall mark his bales clearly on the outside of the wrapping material with his registered number in arabic numerals not less than three centimetres and not more than eight centimetres in height and on not less than two sides, and shall in addition mark above his registered number the letters "TZ" in the same dimensions.

(2) In any selling season when the Board shall, in exercise of its powers under paragraph 16 of the Schedule to the Act, have declared its intention to buy tobacco and to do so by classification, it may direct that bales offered for sale shall be marked in such a manner that when the bale wrappings are opened the registered number shall not be visible to a classifier.

(3) For his own identification purposes, a seller, in addition to the registered number referred to in sub- rule (1), may mark his bales after and in the same place as his registered number with an alphabetical letter.

(4) The provisions of this rule shall not apply to any sale by the Board of any tobacco purchased by the Board, nor to any resale of tobacco by the holder of an auction floor licence pursuant to paragraph (b) of sub-rule (3) of rule 59.

21. Bale labels

(1) A seller shall securely attach to a bale offered for sale a bale label on which shall be clearly marked in arabic numerals the lot number of the bale, which lot number shall be exclusive to that bale and shall not be allocated to any other bale during the season.

(2) A seller may if he so wishes mark on the bale label a group number to indicate the order in which bales are to be offered for sale, in which case—

(a) bales shall be numbered from one upwards for each consignment;

(b) a numeral or numerals indicating the group number shall be positioned on the bale label above the lot number;

(c) there shall be no limit to the number of groups in any one consignment;

(d) no seller may mark his bale labels with group numbers in more than one colour.

(3) The provisions of sub-rule (1) shall not apply to the sale by the Board of any tobacco purchased by the Board.

22. Labelling of bales by graders

(1) A grader shall securely attach to each bale delivered by him for sale a label bearing his name in printed letters which shall not be less than one centimetre in height.

(2) A seller or a grader may not deliver for sale a bale labelled so as to indicate that the tobacco has been graded by a grader unless the tobacco has been graded by the grader whose name is printed on the label.

23. Prohibition of any other markings

Except with the permission of the Board in writing, and subject to the provisions of Part VIII, no seller or other person shall cause to be displayed on a bale offered for sale any marking, identification or other information nor in a manner other than is permitted under this Part:

Provided however that should he so wish a seller of a bale of Oriental tobacco may, in addition to his registered number, mark on the outside of the wrapping material the lot number of the bale.

PART VIIPACKING OF TOBACCO FOR SALE

24. Part VII not to apply to sales at primary or rural level

The provisions of this Part shall not apply to tobacco offered for sale at a primary or rural level.

25. Wrapping and sewing materials

(1) Subject to the provisions of this rule, every seller of tobacco shall ensure that his tobacco is packed in bales—

(a) having in good condition an outer covering of hessian or such other material as may from time to time be approved by the Board;

(b) having an inner covering of new or undamaged waterproof paper or such other material as may from time to time be approved by the Board;

(c) properly sewn with twine in good condition not being made from sisal or jute, so that no single stitch shall exceed eight centimetres in length and no gap between stitches shall exceed eight centimetres in length and all stitches shall be locked on the ends of the bales near the corners.

(2) The provisions of paragraph (c) of sub-rule (1) shall not apply to the sellers of oriental tobacco which tobacco shall however be offered for sale in bales laced with twine in such manner as the Board may from time to time direct.

26. Weights and dimensions of bales

(1) Subject to the provisions of this rule, a seller shall—

(a) pack his Virginia flue-cured tobacco in bales—

(i) weighing not less than twenty-three kilogrammes net nor more than one hundred and nine kilogrammes net;

(ii) having dimensions of eighty-six centimetres long, sixty-one centimetres high and not more than sixty-six centimetres wide;

(b) pack his Burley tobacco in bales—

(i) weighing not less than nine kilogrammes net nor more than fifty-nine kilogrammes net;

(ii) having dimensions of eighty-six centimetres long, sixty-one centimetres high and not more than sixty-six centimetres wide;

(c) pack his Oriental tobacco in bales—

(i) not exceeding twenty-three kilogrammes net in weight;

(ii) having dimensions of sixty-nine centimetres long, thirty-eight centimetres high and not more than fifty-one centimetres wide.

(2) Notwithstanding the provisions of sub-rule (1), no seller may offer for sale—

(b) a split bale of Burley tobacco weighing less than fourteen kilogrammes net.

PART VIIISALE OF TOBACCO BY AUCTION

27. Application of Part VIII

The provisions of this Part shall apply—

(a) to the sale by auction of auctionable tobacco other than a sale of such tobacco at a primary or rural level;

(b) to the sale by the Board by auction of any non-auctionable tobacco purchased by the Board.

28. Duties and powers of sales supervisors

(1) A sales supervisor shall—

(a) ensure that the provisions of the Act and the regulations made thereunder and the rules made and the instructions given by the Board are being complied with;

(b) report breaches of such Act, regulations, rules and instructions to the Board;

(c) ensure that bales are properly placed in rows on auction floors and suitably opened and sampled;

(d) check weighing-in scales;

(e) from time to time re-weigh bales of tobacco for the purpose of ensuring that they have been correctly weighed;

(f) report incorrect weighing to the holder of the auction floor licence concerned and cause the necessary adjustments to be made.

(2) A sales supervisor may remove or cause to be removed from an auction floor any bale which does not conform to the standards laid down in these Rules.

(3) A sales supervisor shall have access to all books, receipts and documents kept by the holder of an auction floor licence relating to the arrival, receipting, booking and sale of tobacco.

(4) Should circumstances arise which are not covered by any instructions given to him by the Board pursuant to section 72 of the Act, a sales supervisor, after consultation with the Secretary to the Board, or, in his absence, an official of the Board acting on his behalf, may, whenever in his opinion it is necessary so to do in order to facilitate the orderly selling of tobacco or to protect the interests of the sellers of tobacco or buyers of tobacco, or both—

(a) suspend a sale of tobacco for a period not exceeding twenty-four hours;

(b) give such directions to sellers, buyers or the holders of auction floor licences as may be necessary on any matter not specifically prescribed under this Part.

29. Power to inspect records

Any official or agent of the Board duly authorised thereunto by the Board in writing may, at any time, examine books and vouchers of the holder of an auction floor licence to ascertain whether the charges authorised by the Board pursuant to section 69 of the Act have been, or are being, adhered to.

30. Tobacco which may be offered for sale

(1) Tobacco may be offered for sale in the form of—

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